Nonprofits · Microsoft 365
Is Microsoft 365 free for Canadian nonprofits?
Partly, and the rules changed recently. Microsoft gives eligible nonprofits some products free and others at a discount, and it has ended at least one grant organizations used to rely on. The result is a lot of charities unsure what they’re entitled to, or paying more than they need to. This page explains what Microsoft says, and where getting it set up properly matters.
Updated · By AltaSmith, Calgary
Grants and discounts are different
Microsoft describes two kinds of nonprofit offer. Grants are free technology, and Microsoft 365 Business Basic is its example. Discounts are reduced pricing on products you would otherwise pay full price for. Which products fall into which group is Microsoft’s decision, and it has changed before.
Who can use the free licences
- Allowed: paid employees, and unpaid executive staff who act as nonprofit leadership.
- Not allowed: program participants, members and donors.
- Volunteers: not covered by the grant. Discounted licences follow different rules, so ask before assuming.
Microsoft also expects granted licences to be used: it requires nonprofits to keep to 85% active usage of assigned grant licences, and says an organization that doesn’t may risk disqualification from future grants.
How applying works
You register through Microsoft’s nonprofit registration. Microsoft says it can take up to seven business days, depending on country requirements and how quickly you answer requests for documents. Eligibility is checked by its third-party validation supplier against Microsoft’s criteria.
Where a proper setup matters
Getting the licence is the easy part. What causes trouble later is how the account was set up:
- Your domain and mailboxes set up so email comes from you, such as [email protected].
- Sign-in protection switched on, so one stolen password isn’t enough.
- The admin login in the organization’s name, with more than one trusted person able to use it. This is what saves you when a volunteer leaves.
- Only the licences you need, so you aren’t paying for, or failing the 85% rule on, accounts nobody uses.
The general version of this is in our Microsoft 365 setup guide, and the wider picture for charities is on our nonprofits page.
Who we are
AltaSmith is a brand of Code To Cloud Inc., a Microsoft Cloud Solution Provider (CSP) partner. Microsoft decides what your organization is eligible for. We help you choose licences, set them up properly and keep the account in your hands.
What it costs
Microsoft changes plans, names and prices often, so we don’t publish a figure that would go out of date. Licences are billed per person and quoted for your team, and setup is quoted separately. Ask for a quote, tell us you’re a nonprofit and how many people need accounts, and we’ll come back with what we can offer. Microsoft sets nonprofit eligibility and rates, and they can change, so check its current terms too.
Common questions
Some of it. Microsoft offers certain products free as grants, with Microsoft 365 Business Basic as its example, and others at a reduced price. Microsoft decides who qualifies and which products are offered, and availability varies by country, so check Microsoft’s current terms.
Microsoft announced in 2025 that it was discontinuing the Microsoft 365 Business Premium grant. If your organization had it, check what you have now and when it changes. Discounted pricing is a separate matter, so ask us what your options are.
Microsoft says nonprofit grants are permitted only for paid employees and unpaid executive staff who act as nonprofit leadership. Program participants, members and donors are not eligible. Discounted licences have different rules, which we check with you.
Microsoft says registration can take up to seven business days, depending on country requirements and how quickly you respond to any requests for documents. Eligibility is checked by Microsoft’s validation supplier.
Microsoft requires nonprofits to keep at least 85% of granted, assigned licences actively used. An organization that doesn’t meet this may risk disqualification from future Microsoft grants, so it’s worth not assigning more licences than you need.
Yes. Microsoft decides what you’re entitled to, and we help with the rest: choosing licences, setting up your domain and mailboxes, turning on sign-in protection and putting the admin login in your organization’s name.
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